House of Representatives

Treasury Laws Amendment (COVID-19 Economic Response) Bill 2021

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)

General outline and financial impact

Schedule 1 - Tax-free treatment of certain small business grants relating to the coronavirus recovery

Schedule 1 to the Bill amends the income tax law to extend the concessional tax treatment of payments received by eligible businesses under eligible COVID-19 recovery grant programs administered by a State or Territory Government (or a State or Territory authority).

Date of effect: The amendments commence the day after Royal Assent.

Proposal announced: The amendments have not been previously announced.

Financial impact: The amendments are estimated to have no impact on receipts over the forward estimates period.

Human rights implications: This schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3.

Compliance cost impact: The amendments in this schedule are unlikely to have more than a minor impact on compliance costs.

Schedule 2 - COVID-19 Disaster Payment: disclosure of tax information to Services Australia

Schedule 2 to the Bill amends the tax secrecy provisions in the Taxation Administration Act 1953 to allow protected information to be disclosed to Services Australia for the purposes of administering the COVID-19 Disaster Payment.

Date of effect: The amendments commence the day after Royal Assent.

Proposal announced: The amendments have not been previously announced.

Financial impact: The amendments are estimated to have no financial impact over the forward estimates period.

Human rights implications: This schedule raises human rights issues. See Statement of Compatibility with Human Rights - Chapter 3.

Compliance cost impact: The amendments in this schedule are unlikely to have more than a minor impact on compliance costs.


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